Selecting a suitable property for the Aberdeen rental market
The Granite City’s residential property market may not be booming for home sellers – but for those seeking to invest in rental property current conditions can provide excellent opportunities.
In order to achieve the maximum return and benefit from any property investment, the correct choice is crucial.
The key to choosing the “right” property is to put yourself into the position of your target audience. Who might they be? – an offshore contractor, a young professional executive, a student, a family with school age children, the options are endless. Some will look for modern flats in a central location, close to university, public transport links or work whilst others will be more interested in good schooling and recreational facilities.
Many tenants these days are on more limited budgets but will still expect a good standard of accommodation and will often discard properties without gas heating, modern kitchens and double glazing. With so much competition you need to be able to offer your prospective tenants something over and above the “run of the mill” rental property.
If considering investing in an older style house or flat it is essential to pay particular heed to the structural condition of the property. Many of Aberdeen’s traditional granite buildings have suffered over the years from a lack of routine maintenance and are reaching an age at which they are requiring major, and very costly, repair.
Tenants are becoming increasingly conscious of energy efficiency and increasing utility costs. Pay attention to the Energy Performance rating contained in the Home Report. If this is poor, you may need to budget for works such as increased insulation or improving/replacing the central heating boiler or other method of heating to improve efficiency.
Finally, and crucially, speak to a local and knowledgeable letting agent. Our property team has helped a number of clients invest in the private rented sector over the years and have gone on to successfully manage many properties on behalf of our private landlords. When you reach the stage of considering suitable rental properties, our property team will be happy to advise on the likely return and whether or not your intended purchase is likely to be a suitable one for the rental market.
Property and Private Client Partner